The International Energy Agency (IEA) projects that by 2030, global electricity demand from data centres will more than double, reaching approximately 945 terawatt-hours (TWh), surpassing Japan’s current total electricity consumption. This surge is primarily driven by the rapid expansion of artificial intelligence (AI) technologies, which are significantly increasing the energy requirements of data centres.
In response, the United States and China are poised to lead the integration of nuclear power, particularly through the deployment of small modular reactors (SMRs), to meet this escalating demand. In the U.S., the expansion of SMRs is expected to reduce reliance on natural gas-fired generation, with low-emission sources, including nuclear, projected to account for over 55% of the data centre electricity supply mix by 2035. Similarly, in China, the introduction of SMRs post-2030 is anticipated to significantly boost the nuclear share of the data centre electricity mix, contributing to a combined 60% share of nuclear and renewables by 2035.
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Context & Background
The escalating energy demands of data centres, driven by the proliferation of AI technologies, have prompted major tech companies to explore nuclear power as a sustainable solution. For instance, Meta has sought proposals for up to 4 gigawatts of nuclear energy to power its U.S. data centres, aiming for implementation in the early 2030s. Similarly, Oklo Inc., backed by OpenAI’s CEO Sam Altman, has agreements to deliver up to 750 megawatts from future reactors to data centre operators, with plans to deploy 12 gigawatts through 2044.
China’s rapid advancement in nuclear power is notable, with 27 reactors under construction and plans to build 150 new reactors between 2020 and 2035. This aggressive expansion positions China to surpass the U.S. in nuclear-generated capacity by 2030. In contrast, the U.S. faces challenges, including lengthy construction times and cost overruns, exemplified by the Vogtle Electric Generating Plant, which experienced significant delays and budget increases.
In This Story
International Energy Agency (IEA)
An autonomous agency that works to ensure reliable, affordable, and clean energy for its member countries and beyond.
Meta Platforms Inc.
A multinational technology conglomerate known for its social media platforms, including Facebook, and its investments in AI and virtual reality.
Oklo Inc.
An advanced nuclear reactor company focused on developing and deploying small modular reactors to provide clean energy solutions.
China National Nuclear Corporation (CNNC)
A state-owned enterprise responsible for the development and operation of nuclear power plants in China.
U.S. Department of Energy (DOE)
A federal agency responsible for policies regarding energy and safety in handling nuclear material.
